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Hollard withdraws insolvency cover for SAA tickets

Hollard Group took the decision earlier this month after a crippling strike started at SAA and the airline warned it might not be able to pay salaries.

South African Airways plane. Picture: Facebook.

JOHANNESBURG – Insurance company Hollard Group on Friday confirmed it had excluded struggling state airline South African Airways (SAA) from its travel supplier insolvency coverage.

Hollard took the decision earlier this month after a crippling strike started at SAA and the airline warned it might not be able to pay salaries.

A wage deal was reached exactly a week ago between the national carrier and unions.

Another large South African travel insurer, Travel Insurance Consultants, also stopped covering tickets issued by SAA against insolvency.

On Thursday travel group Flight Centre said it had cut ties with SAA for now, citing ongoing concerns about the airline's financial stability and the unwillingness of their travel insurance providers to continue covering SAA.

The travel group said it would stop selling the airline's tickets to its customers. This is the first time the group, which is said to be the country's largest travel specialist, has had to issue a stop-sell on the national carrier.

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